Mexico Infrastructure Report Q1 2008

The Mexican construction space is buzzing with activity. The construction industry has displayed impressive growth over the last few years and the trend is expected to continue. BMI forecasts the construction industry to grow at 5.82% on average during the 2008-2012 period.

The country's national infrastructure programme (2007-2012) envisages major development on the construction front. A number of projects are currently underway, particularly in the transport infrastructure sub-sector, which will receive government investment to the tune of MXN50.1bn (US$4.54bn) in 2007. Prospects for residential construction in the country also appear bright, primarily due to rising incomes and easier availability of finance. Furthermore, 21 power-generation projects worth US$6.5bn are planned during the next 10 years. Major projects planned or currently underway include the US$5bn suburban train project in Mexico City; the US$1.4bn infrastructure development in the Chicontepec oil region and the US$1.01bn metro line in Mexico City's subway system.

On the downside, the Mexican economy is largely susceptible to US economic cycles. Strained diplomatic relations with the US may not augur well for trade with the country, which was a key growthdriver in 2006. As it is heavily dependent on steel imports, Mexico is also sensitive to steel-price fluctuations. An unimpressive legal infrastructure and prevalence of corruption are some of the other impediments to growth. Despite a vibrant economy, the financial markets are not yet fully developed.

The industry is forecast to be valued at MXN769.97bn (US$57.11bn) in 2012, contributing 5.46% of the year's gross domestic product (GDP). Activity in the transport infrastructure space (particularly the grant of a large number of road concessions) and ongoing reforms in the energy sector are expected to be significant growth drivers.

• Executive Summary
• Industry Trends and Development
• Market Overview
• Mexico's Economy in 2006-2007
• Mexico's Construction Industry in 2006-2007
• Major Companies
• Some Recent Investment Initiatives
• Key Projects
• Transport
• Utilities
• Tourism
• Residential and Commercial Construction
• Business Environment
• Introduction
• Ratings Overview
• Regional Overview - Americas
• Mexico: Business Environment Rating
• Limits of Potential Returns
• Risk to Realisation of Potential Returns
• SWOT Analysis
• Mexico Infrastructure Industry SWOT
• Mexico Political SWOT
• Mexico Economic SWOT
• Mexico Business Environment SWOT
• Industry Forecast Scenario
• Risks
• Macroeconomic Outlook
• Competitive Landscape
• Company Monitor
• Cemex
• Holcim Apasco
• Empresas ICA
• BMI Forecast Modelling
• How We Generate Our Industry Forecasts
• Construction Industry
• Sources
• List of Tables
  • Table: Mexican Major Infrastructure Projects
  • Table: Mexican Major Infrastructure Projects (cont)
  • Table: Mexican Major Infrastructure Projects (cont)
  • Table: Mexican Major Infrastructure Projects (cont)
  • Table: Mexican Major Infrastructure Projects (cont)
  • Table: Infrastructure Business Environment Indicators
  • Table: Americas Business Environment Rating
  • Table: Mexico Infrastructure And Macroeconomic Historic Data And Forecasts
  • Table: Mexico Infrastructure And Macroeconomic Historic Data And Forecasts (cont)
  • Table: Mexico - Economic Activity
  • Table: Key Players